In the formula for percentage depreciation, what is the numerator?

In the formula for percentage depreciation, the numerator represents the amount of depreciation that has occurred, which is quantified as dollar depreciation. This value reflects the reduction in worth of an asset due to factors such as wear and tear, obsolescence, or market conditions that affect its value over time.

When calculating percentage depreciation, the numerator ($ Depreciation) is divided by a value that indicates the original or replacement cost of the property, which allows for the determination of the percentage decline in value. This is crucial for understanding how much value has been lost relative to what the asset was worth at its inception or its current replacement cost.

In contrast, the remaining options pertain to different concepts in appraisal. The RCN (Replacement Cost New) would be used in the denominator, representing the cost to replace the asset, RCNLD (Replacement Cost New Less Depreciation) provides an overall value of the asset after accounting for depreciation, and Market Value refers to what the property could sell for in the current market, which is also typically not used directly in the calculation of percentage depreciation. Thus, using the $ Depreciation in the numerator accurately represents the essence of this formula.